Zephyr Energy PLC said output from its asset portfolio in the Williston Basin, North Dakota, almost tripled in the first quarter of 2022.
Sales from the (non-operated) portfolio averaged circa 1,600 barrels of oil equivalent per day (boepd) net to Zephyr, up from 548 boepd in the previous three months, with a net aggregate of 144,540 barrels of oil equivalent (boe).
First-quarter revenues totalled US$11.5mln net to Zephyr at average costs of US$11.87/boe, which the junior said demonstrated the high-profit margin realised from the hydrocarbons sold during the period.
Based on its current hedges, Zephyr added it expects revenue for the year from its non-operated portfolio to be in a range of US$35-40 mln based on forecast production of between 500,000 - 550,000 boe during the year.
The revenue forecast is based on an average hedged production price of US$98 for the remainder of the year and US$90 flat for the remainder of its anticipated production.
Zephyr has currently hedged just under half of its forecast non-operated production over the next two years.
The company paid US$36mln in February for around a 4% interest in the Williston Basin portfolio, which is operated by Whiting Petroleum.
Auctus Advisers has also been appointed to publish equity research on the company, said the statement.